Reliance Jio IPO Might Happen in the Next 2-3 Years: Report

Reliance Industries Limited (RIL), the Mukesh Ambani’s venture is reportedly considering an Initial Public Offering (IPO) for Reliance Jio in the next couple of years, according to a person in the knowledge of the matter said to Livemint. RIL, the parent company is planning to list RJIL (Reliance Jio Infocomm) on the exchanges if the company’s consumer businesses overtake energy business in terms of revenue, the same person said requesting anonymity. “Reliance Jio’s plans are massive, and when it reaches that stage, the company shouldn’t be a 100% subsidiary of a refinery company,” the person said.

reliance-jio-ipo

Within no time, Reliance Jio achieved 186.6 million subscribers and has changed the entire scenario of Indian telecom sector with its aggressive tariff plans and strategies. Reliance Jio is currently the fourth largest telecom operator in terms of subscriber base, while the Revenue Market Share of the company has recently surpassed Idea Cellular. “The consolidation of the industry into about three large operators and an increase in Reliance Jio’s market share will set the stage for the listing of the company,” added the report.

“Many RIL investors don’t understand data services or digital services and many of those who want to invest in digital services may not want to invest in refineries,” the person cited above said. “At some point, when everything has stabilised, you will have to give investors options to invest where they want to,” the same person said.

Furthermore, he added “If we keep Reliance Jio as a 100% subsidiary of RIL, some RIL investors are bound to say that they don’t understand digital services. Which is one of the reasons our stock price doesn’t reflect our true potential.” He further added that RIL’s consumer business would be on a “par with its energy business in three years”.

At the moment, Jio’s goal is to increase the subscriber base and become the leader in the Indian telecom sector. “There is no cutoff time, and there are a lot of decisions that need to be taken (for the listing to happen),” the report further added. However, he quickly rubbished that “Reliance Jio separate from RIL is going to be a complicated decision, which not many at the company are currently prioritising.”

This is not the first time we’re hearing about Jio’s IPO. Earlier in December 2017, a report from Bloomberg also stated that RIL is considering IPO for Jio in early 2019, but this report says that it might happen only if RIL’s consumer businesses overtake energy business.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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EsmailKiran Fernandes | GoaNikhil Mumbai-PuneChetanArena Recent comment authors
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Arena
Arena

What’s is the spectrum limit each operator can have?? Airtel piled up much in 900 and 1800 and voda+idea will make even higher..so operators with lower spectrum will left with no option to compete. Now Airtel holds 15-24mhz per circle in 1800mhz frequency.

Screenshot_20180625-175450.jpg
Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

They will add up more in upcoming auctions. ROm has returned it,Aircel most probably will and there is still left unsold. It will be interesting competition this time around for band 1 and 3.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

RCom*

Chetan
Chetan

Which are the other Operator you talking about. Apart from Jio, VOID and Airtel, no body else is left in the market… Jio and Airtel has just sufficient in band 5 and band 8 respectively and VOID has good amount in band 8…. VOID will defiantly benefit from this in building Volte coverage…

Kiran Fernandes | Goa
Kiran Fernandes | Goa

I just want Jio to have 10MHz in band 5 pan India, and around 15MHz in band 3 pan India. Add 2100MHz to the lot, and we could get 6 bands CA

850(10)+1800(15)+2100(20)+2100(20)+2300(20)+2300(20). Is this combination possible? Forget about 900MHz band because of the 35% limit for bands under 1kMHz.

With this combination along with 4×4 MIMO on all bands, we should get easy 800Mbps on Jio everywhere.

I checked LTE category 8, and it uses 8×8 MIMO. They get 3Gbps download, and 1.5Gbps upload on a single band!

Esmail

You mean to say you want Jio to have the entire spectrum of band 1 (2100 MHz) to itself? When u say 2100(20)+ 2100(20) it means Jio would have the entire 40 MHz of that band. Not possible with Airtel and VoId holding most of the spectrum in this band.

Kiran Fernandes | Goa
Kiran Fernandes | Goa

Alright Esmail, so it looks like getting spectrum in band 1 isn’t easy. Is there any band between 2 to 3GHz which can be utilised for 4G? I checked some bands, and I wonder if Jio can get the following bands, if possible…

Band 2: 1.9GHz
Band 7: 2.6GHz
Band 11: 1.5GHz
Band 23: 2GHz
Band 24:1.6GHz

And what exactly is this band 4? 1700/2100? Either use 1700 or 2100?

Esmail

Band 2 is exclusively alloted to Defence ministry, remember how DoT exchanged 15MHz in band 2 for 15 MHz in band 1 with the Defence?
Band 7 was allotted to BSNL but they surrendered it due to lack of ecosystem and since then it is not used by DoT.
Remaining bands which you mentioned are not demarcated for Telecommunication use in India.
Band 4 has uplink in 1700MHz and downlink in 2100 MHz, and since India uses band 1 which also has downlink in 2100 MHz we can’t use band 4 and band 1 simultaneously.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Jio can have maximum coverage with Band 5.They will get almost 15Mhz. If Avoid turns into profit for next two years(provided tariffs gets settled),Jio won’t be able to get band 3 spectrum. Where there is spectrum in band 40? Everything got sold already.Jio can have band 41 spectrum if BSNL returns it.

Esmail

There will be another 20 to 40 MHz in band 40 in each circle which will become available after spectrum harmonisation in that band and will be put up for auction soon. Total 80 MHz in band 40 is earmarked for telecom.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

I don’t know anything about band 1 yet.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Whatever you said is distant dream. This won’t be achieved till 2022.

Esmail

The current spectrum caps per operator are 50% of total available spectrum in B28+B5+B8 (700+850+900 MHz bands) and 35% of cumulative available spectrum across all bands in a given circle. Don’t worry about the 1800 MHz band, a lot of administratively allocated spectrum to Airtel and VoId will expire in 2021 which will be put up for auction in two years time, also the surrendered spectrum by Rcom and Aircel will be put up for sale and Jio can go ahead and buy as much as it wants since by then the free cash available with Airtel and VoId will… Read more »

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

+1

I hope to see 2G shutting down on this band as early as possible and get it for 4G.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Do you think Airtel won’t come in profit since 2019 March?

Esmail

The tariff war and pricing pressure doesn’t seem likely to be relieved for another 4 to 6 quarters.

Ideapro
Ideapro

Jio IPO will be like its fiber launching date by just delaying every time since last 2 -3 years.

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